The India-US trade deal would be signed once the US comes up with the new tariff structure, government sources have said, adding that the deal will address issues like Section 301 investigation. The Ministry of Commerce sources have said that the government is currently examining the legal implications of Section 301.
“But actual signing will likely be done when the new architecture of tariff will be in place, globally. Because at the end of it, each country is doing a deal as a part of a package where one is at comparative advantage or disadvantage with others. So whenever the US side is ready also with that architecture, that will be the opportune time to sign the deal,” said a commerce ministry.
On February 20, the US Supreme Court had struck down the tariff imposed by the US administration. Thereafter, US President Donald Trump immediately announced a 10% tariff under a different law. Later on, Trump announced to raise this temporary duty to 15%. Last week, the US administration launched a new series of investigations against various countries including India under the Section 301 trade provision over excess manufacturing capacity and trade surplus. It even launched a new probe to look into whether countries including India have failed to ban the import of goods made using forced labour.
“When we are talking about this new architecture of tariff, we are also taking into account the Section 301 investigations that the US has started because it is not against all countries, it is against specific countries and India features in both. The US has also asked for consultations. We are examining its legal impact. Whenever a deal is finalized and signed in future, this will take care of these investigations as well,” added the official.
The official assured that the aim is to ensure that India gets preferential access to the US and now the time is being utilised to address several other aspects of the trade deal. Meanwhile, Trump stated in his social media post that he has an absolute right to charge tariffs in another form, and that his government has already started to do so.